Kenneth Rijock

Monday, March 10, 2014

PARTNER AT PONZI SCHEME LAW FIRM CHARGED WITH FEDERAL ELECTION CAMPAIGN LAW VIOLATIONS

Scott Rothstein (l), Russell Adler (r)

Individuals who are involved in a Ponzi scheme sometimes find themselves charged with other crimes, which were committed incidental to the criminal enterprise, but which facilitated its illicit goals. Russell Adler*, who was a name partner at Scott Rothstein's now-defunct law firm, has been charged with Conspiracy to Violate the Federal Election Campaign Act, and Conspiracy to Defraud the United States.

Adler, and other Rothstein, Rosenfeldt Adler law firm members, fronted for managing partner Scott Rothstein, by making campaign contributions in their own names, and later received reimbursements, disguised as firm bonuses. Adler contributed to presidential and senatorial campaigns for Republican candidates; Rothstein intended to use the massive contributions for the purpose of acquiring political influence over elected officials; We call that corrupt activity, but here the penalty will be minimal.

Adler's case involved the filing of a Criminal Information, which generally indicates an arrangement with prosecutors has been reached ; he is scheduled for a change of plea next month, meaning that he will not be contesting the charge. Whether he had a role in the billion-dollar Ponzi scheme, in which bogus court settlements were sold to unsuspecting investors, may never be publicly known, but he will face justice, on a reduced level, compared to some of the other defendants, but justice all the same.
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*United States vs. Adler, Case No.: 14-60050-cr-COHN (SD FL).